CMS is taking the opportunity to educate suppliers on the key steps they will need to take in preparation for the round one rebid for the durable medical equipment, prosthetics, orthotics, and suppliers (DMEPOS) competitive bidding program. The DMEPOS competitive bidding program was implemented so that Medicare and its beneficiaries can reap substantial cost savings when suppliers offer their durable medical equipment (DME) and supplies at competitive prices. Also the program will help ensure CMS pays appropriate prices for DME goods and services, an area in which overpayments are common, according to CMS.
In the original DMEPOS competitive bidding program, bids resulted in prices that were an average 26 percent lower than prices on the existing 2008 DMEPOS fee schedule. These lower prices would amount to substantial savings for Medicare beneficiaries when they have to pay out-of-pocket costs related to their 20 percent deductible.
The registration period will begin during the summer of 2009 and the round one rebidding period should start in the fall. In preparation for the fall bidding period, suppliers should ensure they have: (1) the appropriate state licenses; (2) updated their Medicare enrollment files with the national supplier clearinghouse; and (3) the appropriate accreditations and bonds needed to participate in the competitive bidding program. New improvements to be implemented for the round one rebid include: (1) an upgraded online bid submission system, (2) early bidder education, and (3) increased oversight of bidders who are new to product categories or competitive bidding areas for compliance with new CMS requirements.
Although the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) (PubLNo 110-275) did not fundamentally change the original DMEPOS competitive bidding project, it did require certain changes be made. CMS was required to terminate contracts that were awarded in the first round of the DMEPOS competitive bidding program that was held in July 2008. Also, MIPPA required the establishment of a financial document review process and required suppliers to report subcontract relationships with other suppliers. Further, MIPPA specifically excluded certain items and areas from competitive bidding and granted hospitals an exemption to the program when the hospital furnished certain types of DMEPOS items to their own patients.
CMS Press Release, May 29, 2009.
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